Low-interest State Plan Provides Loans For Homes

A total of $25 million in low-interest mortgages and energy conservation loans will be available to Pennsylvania home buyers starting Nov. 12.

The money comes from the Pennsylvania Housing Finance Agency's (PHFA) single-family mortgage program and, for the first time, includes loans for home energy conservation.

"These low-cost mortgages give our middle-income families the chance to buy homes they might not otherwise be able to afford," said Lt. Gov. William W. Scranton 3rd. "The conservation loans allow energy savings for years to come, both for homeowners and the commonwealth."

PHFA offers 30-year mortgages to qualified applicants with a 5 percent down-payment at a fixed rate of 9.98 percent, or about 2 to 3 percent below conventional rates. Loans are limited to first-time purchasers of single- family houses, except in 39 "targeted" counties where previous ownership does not preclude participation. Applications will be accepted at participating lenders Nov. 12-13.

Participating lending institutions in counties in The Morning Call circulation area are: